
48 Hours of Market Turmoil Lop Nearly 6 Points off Canadian DB Funded Ratios
In the two days after the U.S. announced new tariffs, the plans lost almost their entire C$18.4 billion surplus.
In the two days after the U.S. announced new tariffs, the plans lost almost their entire C$18.4 billion surplus.
For the 17th straight year, public pensions remain below 90% funded.
Interest rates and market volatility continue to pose a significant risk for many plans.
Positive asset returns, combined with rising bond yields, helped boost pension funds’ solvency.
The 100 largest public plans saw an aggregate investment loss of 1% during the month.
Thanks to surging bond yields, the aggregate funded ratio of the PPF 7800 rose to 120.1% in June, up from 106.5% a year ago.
Increasing funding levels are expected to spur another big year for pension risk transfers.
Market downturn could be the final straw for struggling public pension plans.